Spanish Troubled-Asset Plan May Backfire

The proposal by Mariano Rajoy, Spain’s new prime minister, to rid the nation’s banking system of some EUR176 billion ($228 billion) of troubled real estate assets may backfire, say analysts, as it relies on healthy banks, rather than the government, to pick up the tab.

25 Jan 2012

The proposal by Mariano Rajoy, Spain’s new prime minister, to rid the nation’s banking system of some EUR176 billion ($228 billion) of troubled real estate assets may backfire, say analysts, as it relies on healthy banks, rather than the government, to pick up the tab.